UK construction output likely to have dropped in May

Construction output in the UK is expected to have dropped in May. The construction PMI had hinted quite strongly that the nation’s construction sector has curbed output considerably and persistently from the turn of the year.

Even if the correlation between the official construction information and the PMI data is poor, both are showing a strong downwards trend in the construction sector. But the official output data are quite volatile.

In April, construction output had rebounding, growing 2.5 percent month-on-month following declines of 0.4 percent, 0.9 percent and 3.7 percent in the initial three months of 2016.

However, the data in May is expected to reverse the gains recorded in the previous month. Construction output is expected to have dropped 1.3 percent month-on-month in May, noted Societe Generale in a research report.